Commerce Bancshares (CBSH) has reported 9.38 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $71.50 million, or $0.68 a share in the quarter, compared with $65.37 million, or $0.62 a share for the same period last year. Revenue during the quarter grew 3.97 percent to $284.21 million from $273.36 million in the previous year period. Net interest income for the quarter rose 8.85 percent over the prior year period to $178.27 million. Non-interest income for the quarter fell 1.65 percent over the last year period to $117.07 million.
Commerce Bancshares has made provision of $11.13 million for loan losses during the quarter, up 17.89 percent from $9.44 million in the same period last year.
Efficiency ratio for the quarter deteriorated to 63.14 percent from 62.62 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
In making this announcement, David W. Kemper, chairman and chief executive officer, said, "This quarter we continued to experience solid loan demand as average loans grew 8% annualized, with most of this growth occurring in our commercial lending business. Average deposits also grew $373 million, or 7% annualized, this quarter after strong growth in the previous quarter. Net interest income increased $14.5 million this quarter compared to the same period last year while our net interest margin expanded to 3.14%. Growth in earning assets, coupled with an improving rate environment, had a positive impact to our margins. We continue to see good growth in both trust and deposit fees which grew 9% and 6%, respectively, this quarter over the same period last year, while mortgage banking fees continued to reflect solid growth. Non-interest expense grew by $5.6 million over the previous quarter but included seasonally higher benefits costs of $5.1 million which normally occur in the first quarter of each year."
Assets outpace liabilities growthTotal assets stood at $25,308.17 million as on Mar. 31, 2017, up 3.27 percent compared with $24,506.95 million on Mar. 31, 2016. On the other hand, total liabilities stood at $22,744.61 million as on Mar. 31, 2017, up 3.10 percent from $22,059.67 million on Mar. 31, 2016.
Loans outpace deposit growthNet loans stood at $13,414.68 million as on Mar. 31, 2017, up 6.93 percent compared with $12,545.74 million on Mar. 31, 2016. Deposits stood at $21,091.85 million as on Mar. 31, 2017, up 1.96 percent compared with $20,686.31 million on Mar. 31, 2016. Noninterest-bearing deposit liabilities were $7,237.82 million or 34.32 percent of total deposits on Mar. 31, 2017, compared with $7,065.07 million or 34.15 percent of total deposits on Mar. 31, 2016.
Investments stood at $9,793.86 million as on Mar. 31, 2017, up 1.05 percent or $101.30 million from year-ago. Shareholders equity stood at $2,563.56 million as on Mar. 31, 2017, up 4.75 percent or $116.28 million from year-ago.
Return on average assets moved up 8 basis points to 1.15 percent in the quarter from 1.07 percent in the last year period. At the same time, return on average equity increased 54 basis points to 11.74 percent in the quarter from 11.20 percent in the last year period.
Credit quality improvesCommerce Bancshares recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 51.57 percent or $16.17 million to $15.19 million on Mar. 31, 2017 from $31.36 million on Mar. 31, 2016. Nonperforming assets to total loans was 0.11 percent in the quarter, down from 0.25 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.06 percent in the quarter, down from 0.13 percent in the last year period. Tier-1 leverage ratio stood at 9.56 percent for the quarter, up from 9.11 percent for the previous year quarter. Book value per share was $23.79 for the quarter, up 4.76 percent or $1.08 compared to $22.71 for the same period last year.
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